ROCKFORD — A hotel and conference center that boasts the potential to bring hundreds of jobs to downtown Rockford cleared a City Council hurdle on Monday.

The City Council’s Planning and Development Committee voted 3-1 to support a development agreement to renovate the city’s first skyscraper into a 150-bed hotel and conference center. Ald. Ann Thompson-Kelly, D-7, voted no because of concerns about how the city’s side of the deal will be financed.

The committee’s approval means the matter will go before the full City Council next week.

Developer Gorman & Co. plans to spend about $52.7 million to redevelop the former Ziock building, 416 S. Main. But before it does, it wants the city to commit to a multi-million dollar initiative to build new parking and improve roads and pedestrian walkways around the hotel. There are also several tax incentives tied to the deal.

The hotel would employ the equivalent of about 75 full-time jobs in its first year, but it would spur much more economic activity than that, according to an analysis conducted by Hunden Strategic Partners on behalf of the city and Rockford Area Convention & Visitors Bureau.

Visitors to the hotel would support other jobs in the downtown area by patronizing existing businesses. Foot traffic from hotel visitors would also encourage new business growth, officials say.

By its fifth year, the hotel and conference center could create about 160 full-time equivalent jobs, according to the analysis. By the same time, its development could lead to a total of about 280 jobs — including those at other businesses spurred by the hotel development — and about $5.5 million in new income for Rockford.

Building the hotel and conference center could also support up to 250 construction and trades jobs, developer Gary Gorman said.

Brad Long, president of the Northwestern Illinois Building and Construction Trades Council, said the project is needed to help put people back to work. He asked for the City Council’s support Monday.

“Jobs are everything right now. It’s a simple as that,” Long said. “It’s a good community project. It’s going to spur other downtown development and create more jobs.”

Interior demolition work could begin today, said Julia Scott-Valdez, the city’s human resources director and deputy city administrator.

City Council members voted 10-4 Monday to authorize $256,000 to renovate the building for use as a wellness center. Some aldermen opposed questioned whether the center was the best use for the property.

Page 2 of 2 - The building at the corner of Third and Market streets was originally considered as a location for a geographic police district headquarters when purchased for $400,000 last year.

The center is meant to provide convenient access to basic, preventative and occupational health care services. City officials say a healthier workforce will save taxpayers in the long run by reducing health care costs.

Residents in the area have been divided over whether the bar is a good fit for the neighborhood. Some say it will invite noise, traffic congestion and other problems like drunken drivers or rowdy customers.

Supporters say it’s a good use for a previously vacant portion of the plaza and will add character to the neighborhood. Some say strip-mall owners Jon and Nancy Whitlock, who also live in the neighborhood, have proven they demand responsible tenants by kicking out former problem businesses such as a troublesome tobacco shop.